One of the main problems faced by financial companies today is their traditional linearity. In the era of digital transformation, the lack of alternative business models and the high cost of owning a “closed” IT infrastructure has brought traditional financial service providers to a crisis and allowed others (PayPal, Apple, Amazon, Facebook, etc.) to exploit their flaws.
The principle of open banking underlies the road forward for banks. Its essence lies in the fact that, instead of cumbersome applications, banks provide their interfaces (APIs), allowing third-parties to create IT services, infrastructures and ready-made solutions. APIs help banks’ flexibly and efficiently integrate necessary platforms, products and innovative services into banks’ value chains and into the traditional IT infrastructure. It also helps increase distribution, flexibility and improved user experiences.
Providers of financial services must give up their historical identity and self-determination if they are to change their positioning in the financial ecosystem and successfully create their own digital culture.